TORONTO — Facedrive Inc. has entered into a purchase agreement with each of the shareholders of Food Hwy Canada Inc., one of Canada’s leading “ethnic and student-focused” food-delivery service.
Pursuant to the terms of the acquisition, Facedrive acquired all of the outstanding shares of Food Hwy for consideration, which consisted of $1,500,000 in cash and 551,370 Facedrive common shares, valued at $7,600,000. In connection with the acquisition, Facedrive also acquired the brand assets, technology, IP and trademarks of Food Hwy, which will continue to serve the latter’s customers, drivers and restaurant partners under the Food-Hwy brand and using the Food-Hwy app.
Food Hwy was started in 2014 by founder and CEO Di Han and has grown aggressively, currently operating in 18 Canadian cities. More than 1,000 registered drivers serve Food Hwy’s 1,200-plus restaurant partners and more than 120,000 active users.
“We are very excited to join the Facedrive ecosystem,” says Han. “We have agreed to join forces with Facedrive because we believe in its vision of environmental and social responsibility. We believe this new relationship will allow the Food Hwy brand to accelerate dramatically our already remarkable growth.”
As part of Facedrive’s Foods division, Food Hwy will continue its razor-sharp focus on the “ethnic and student segment” while expanding into mainstream markets for ethnic foods. It will continue to execute its city-expansion strategy with a plan to expand to 30 additional cities within the next 18 months.
“Food Hwy is an innovative and high-growth organization that has mastered its business model by retaining sharp focus on its customers,” says Sayan Navaratnam, CEO and chairman of Facedrive. “Looking at the recent acquisition of Grubbhub by the Amsterdam-based Just Eat, we similarly expect this transaction to serve as a launchpad for us to broaden operations of Facedrive Foods into multiple Canadian markets and niches, thus expanding our already wide reach. In our turn, we’re very excited to have an opportunity to scale up Food Hwy’s sales and marketing and believe Food Hwy is an ideal fit for our eco-friendly technology ecosystem”.
Facedrive expects Food Hwy to deliver $10.5 million in revenue in calendar year 2020 and expects to grow its combined food-delivery business to $30 million in revenue in 2021.
Coming on the heels of the company’s acquisition of Foodora Canada, the deal is expected to further accelerate the growth, as well as market breadth and depth, of Facedrive’s Foods division.